Transport costs filter through almost every aspect of a household budget. For those already stretched to their limit, the rising cost of living creates so much pressure that they are questioning what else they can cut, or whether they should sell the home they have worked so hard to acquire.
Other considerations include renting out the family home in the hope that the rental income will cover the bond and some of the costs of renting a property closer to work; creating a multigenerational household where grandparents take on childcare responsibilities to achieve savings; and cancelling essential household insurance policies.
In an informal survey, we asked a handful of property consumers what questions they are asking themselves and explored some possible answers.
What households are having to reconsider
1. Why does everything cost more when petrol prices rise?
Fuel costs affect more than your own transport expenses. They can also push up the cost of transporting food, building materials, deliveries, and other goods. Businesses may absorb some of these increases, but sometimes have little choice but to pass some, if not all, of the additional costs on to consumers.
Consider: Before you panic, calculate your weekly fuel consumption. For instance, the October petrol-price increase adds R3.33 per litre to the cost of 95-octane petrol. If you buy 50 litres a week, that means an additional R166.50 a week, or approximately R722 a month on average. For 93-octane petrol, the equivalent increase is R156 a week, or approximately R676 a month.
These figures cover fuel alone, before any knock-on effects on other household expenses. That will depend on how businesses respond to higher costs.
2. Is the daily commute to work still worth it?
Beyond calculating your fuel costs, you also need to consider the monthly cost of parking, vehicle maintenance, tolls, and insurance. Would living closer to work reduce the total cost enough to justify moving? Could hybrid working, car-sharing, public transport, or changing your working hours offer a cheaper alternative?
Consider: Car-sharing can reduce your monthly petrol costs. If you can give three colleagues lifts to and from work, four people can share the travel expenses. Your employer may also be able to help. Check whether it could arrange a shuttle or taxi service along a route serving areas where many employees live, or subsidise transport costs.
3. Is my home insurance still affordable?
When household budgets shrink, expenses such as groceries, utilities, and debt repayments take priority. Insurance can feel like money is being “wasted” each month if no claim is made. Cancelling monthly debit orders may free up cash immediately, but it can leave households exposed to significant financial losses. Some homeowners assume that a disaster will not happen to them or believe they can ride out a temporary financial crunch without insurance protection.
Consider: Before cancelling any policy, review your building or contents cover, vehicle insurance, excesses, and policy terms. Ask your insurer whether you can retain suitable cover at a lower premium. If you are considering reducing your cover or increasing your excess, make sure you understand all the risks before making a decision.
4. Should I move to a cheaper area or closer to work?
A lower rental or bond repayment may be attractive, but households need to compare the full cost of living in a new location. Savings can disappear if the move means longer journeys, additional childcare, higher security costs, or losing access to affordable public transport.
Consider: Do a comparison test before deciding. Use the following factors to assess whether moving would genuinely improve your finances.
| Factor | Staying where you are | Moving closer to work |
|---|---|---|
| Housing | Existing bond or rent | New rent or bond, plus moving costs |
| Transport | Current fuel, tolls, parking, maintenance | Potentially lower commuting costs |
| Safety | Familiar area and existing security arrangements | Research the new area's safety and security costs |
| Family needs | Existing schools, childcare, and support networks | Possible changes to schools, childcare, and routines |
| Long-term finances | Avoids immediate moving costs | Could free up monthly cash if total costs fall |
The key calculation is the net monthly saving, not just the reduction in petrol spending.
For example, if moving saves R2,000 a month in commuting costs but increases rent by R1,500, the apparent saving is just R500 a month before moving expenses and other changes.
5. What can I change without moving?
Many households have probably already reviewed their grocery shopping, planned meals, eliminated unnecessary trips, cancelled subscriptions, reduced electricity use, paid down debt, and even cancelled recurring service contracts. If you have not already done so, making small savings across several categories may be more practical than taking on the cost and disruption of relocating.
Consider: If these savings are still not enough, you may need to move from budget trimming to more substantial financial changes.
- Review your housing costs. Speak to your home loan provider about available options if your repayments have become unaffordable. Understand the long-term interest costs and implications before agreeing to extend your loan term or change your repayment arrangements.
- Consider taking in a lodger. If you have a spare bedroom or suitable outbuilding, rental income could help cover your housing costs. Check local requirements, security considerations, and any implications for your insurance or bond agreement.
- Review your debt. Speak to your bank or a reputable financial adviser about options for managing expensive loans and credit-card debt. Debt consolidation is not automatically cheaper, so compare the total repayment costs and terms.
- Contact your creditors early. If you are struggling to meet repayments, ask whether an affordable payment arrangement is possible. Understand how any revised arrangement could affect interest, fees, and your credit record.
- Compare insurance quotes. Obtain quotes from other insurers for equivalent vehicle, building, and contents cover. You may be able to reduce premiums without sacrificing essential protection.
- Reassess your vehicle costs. If your car repayments and running costs are draining your budget, investigate whether selling the vehicle and buying a cheaper, fuel-efficient, reliable used car would leave you better off after settlement and replacement costs.
- Sell items you no longer need. Unused electronics, jewellery, or sports equipment could provide a once-off cash injection, although this will not solve an ongoing monthly shortfall.
- Consider additional income. Contract work, freelancing, or other suitable part-time work could help supplement your household income, provided the additional costs and time commitments make financial sense.
